Economic and financial crisis: Taking a breath due to work sharing

Abstract

"For German establishments work sharing, ('Kurzarbeit') is an important option to layoffs. They may receive benefits when they refrain from the use of layoffs, and instead reduce working hours of employees. As a compensation for the unavoidable reduction of work employees receive 'Kurzarbeitergeld' from the unemployment insurance. The success of this programme will depend on the forthcoming economic development. In the long run mere 'Kurzarbeit' can not save jobs if there is no perspective for employment. Work sharing might be helpful if lack of work is transitory. But if structural transformation is unavoidable it will be deferred." (Author's abstract, IAB-Doku) ((en))

Cite article

Crimmann, A. & Wießner, F. (2009): Wirtschafts- und Finanzkrise: Verschnaufpause dank Kurzarbeit. (IAB-Kurzbericht 14/2009), Nürnberg, 12 p.